TOPIC 19 Flashcards
Whole-of-life assurance is a pure protection product. True or false?
True False
True
When determining a person’s budget for protection, the adviser should use as a maximum:
a proportion of the person’s current disposable income.
a proportion of the person’s future disposable income.
all of the person’s current disposable income.
a proportion of the person’s current disposable income.
Which whole‑of‑life plans meet a variety of protection needs within one plan?
Joint life.
Mortgage-related.
Universal.
Universal.
If a couple separates and the parties want to sever all financial ties, a joint-life policy is still appropriate. True or false?
True False
False
Under ICOBS 5 suitability requirements, a firm must inform the customer if it finds that:
they have made a misrepresentation.
documents have been provided in a durable medium.
parts of the cover do not apply.
parts of the cover do not apply.
Which remedy may be available to the insurer if a customer makes a careless misrepresentation?
Refuse all claims but return the premiums.
None: the insurer must pay any claim.
Treat the contract as if it never existed.
Refuse all claims but return the premiums.
Consumers’ main duty of disclosure when entering into, or renewing, an insurance contract is:
utmost good faith.
fair representation.
disclosure of all material facts.
fair representation.
Which section of ICOBS states that firms must take reasonable steps to ensure the suitability of advice to any customer who is entitled to rely on their judgement?
ICOBS 5.
ICOBS 6.
ICOBS 7.
ICOBS 5.
If some savings are reallocated to meet costs arising on death or illness, the client may wish to make additional protection provision. True or false?
True False
True
Which piece of documentation is normally issued when the recommendations are presented to the customer?
Acceptance letter.
KFD.
Cancellation notice.
KFD.
Relevant CPD can contribute to the FCA’s training requirements under ICOBS. True or false?
True False
True
he duty to take reasonable care not to make a misrepresentation is known as:
utmost good faith.
material facts.
fair representation.
fair representation.
Cancellation is covered under which section of ICOBS?
ICOBS 5.
ICOBS 6.
ICOBS 7.
ICOBS 7.
The cooling-off period for life assurance, CIC or IPI is generally:
14 days.
20 days.
30 days.
30 days.
What is an important feature to ensure financial protection continues in times of need?
Waiver of premium.
Separation benefit.
Indexation.
Waiver of premium.
